Igloo Energy has followed fellow challenger supplier Bulb in bucking the recent price hike trend as it plans to cut prices by an average of 2.6 per cent.
A typical customer on Igloo Energy’s single tariff “Igloo Pioneer” can expect to see a £36 decrease on their gas and electricity bills per year.
Igloo cited a 12 per cent drop in wholesale gas prices since December as a reason for it being able to reduce bills.
The milder winter weather kept gas storage levels “healthy across Europe”, the company said.
Wholesale electricity costs also dropped by the same amount but increasing “network and policy costs” have pushed prices up overall, according to Igloo.
Last week, mid-tier supplier Bulb announced it is to cut its prices by an average of £20 a year, following a fall in wholesale gas costs.
Igloo said on average it will charge its customers £269 less per year than the Ofgem price cap.
Matt Clemow, chief executive of Igloo Energy, said: “Despite some energy providers ramping their costs by up to 10 per cent since Ofgem changed its price cap, we’re proud to be lowering our customers’ bills thanks to a drop in wholesale costs.
“Energy bills can be a huge drain on household finances, so we’re committed to keeping our prices as low as possible whilst helping our customers to actively reduce their energy consumption. This doesn’t just save money, it saves the environment too.”
Igloo recently secured more than £600,000 of investment on the crowdfunding platform Seedrs.
All the big six suppliers have announced price increases in line with Ofgem’s revised £1,254 price cap level which will come into effect on 1 April.
Co-op Energy and Ebico will also hike their prices, while other challenger brands have been accused of following the big six’s lead.
Analysis by website Uswitch claims 15 million standard credit and prepayment customers have already had a £1.7 billion price rise confirmed for April.
It said Ovo Energy, Bristol Energy, Tonik, Toto and First Utility have all announced increases.